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Baidu Inc. (BIDU) Ascends While Market Falls: Some Facts to Note

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The most recent trading session ended with Baidu Inc. (BIDU - Free Report) standing at $91.98, reflecting a +0.39% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the web search company had gained 3.78% over the past month. This has outpaced the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.73, showcasing a 2.5% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.84 billion, indicating a 2.53% increase compared to the same quarter of the previous year.

BIDU's full-year Zacks Consensus Estimates are calling for earnings of $11.17 per share and revenue of $19.23 billion. These results would represent year-over-year changes of -1.93% and +1.86%, respectively.

Investors might also notice recent changes to analyst estimates for Baidu Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Baidu Inc. is holding a Forward P/E ratio of 8.21. This valuation marks a discount compared to its industry's average Forward P/E of 37.76.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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